2. In Figure 7.6 the reduction in the cost of fringe benefits resulted in an increase in...

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2. In Figure 7.6 the reduction in the cost of fringe benefits resulted in an increase in the amount of fringe benefits and a reduction in the wage income received.

Redraw the worker’s indifference map to demonstrate a circumstance in which fringe benefits would not go up by as much, but wage income would increase .
Explain the difference between the two situations.

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Contemporary Labor Economics

ISBN: 9780073375953

9th Edition

Authors: Campbell McConnell, Stanley Brue, David Macpherson

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